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29 Feb 2012 06:00 AM
53 percent of large cap equity funds underperform S&P CNX Nifty over the last 5 years: CRISIL 
Team Cafemutual
 


However, 65% large cap funds outperformed in 2011.

53% of actively managed equity funds have failed to beat S&P CNX Nifty, a benchmark index for large cap companies, shows a CRISIL study released today. However, in 2011, 65% large cap funds produced higher returns than the S&P CNX Nifty. 

Similarly about 58% of diversified funds underperformed the S&P CNX 500 over the past five years but in 2011, 54% of diversified funds were able to beat the index. The story is similar for ELSS and balanced funds.

MIPs, gilt and debt funds (which invest in corporate debt) on the other hand have outperformed their benchmarks over a five year period.

“The Indian mutual fund industry is going through a consolidation phase. None of the categories had a 100% survivorship over the past five years indicating mergers across categories. Among funds, diversified equity funds had the lowest survivorship in the one and five-year periods, while balanced funds had the lowest survivorship in the three year period,” said Tarun Bhatia, Director Capital Markets at CRISIL Research.

“The latest Standard & Poor’s Index Versus Active Funds (SPIVA) scorecard for India highlights the difficulty of picking consistently successful stocks in volatile market conditions, with the majority of active managers underperforming their benchmarks over the latest five-year period,” said Simon Karaban, Director at S&P Indices.

  Percentage of funds outperformed by the benchmark

Fund category

Benchmark index 

1-year

3-year

5-year

Large Cap

S&P CNX Nifty  

35.29

59.26

52.63

Diversified

S&P CNX 500 

46.26

45.83

57.83

ELSS

S&P CNX 500  

27.78

48.48

59.26

Balanced

CRISIL BalanCEX 

68.97

51.61

68.75

MIP

CRISIL MIPEX

55.56

40.43

48.94

Gilt

CRISIL Gilt Index 

38.24

54.55

46.88

Debt

CRISIL CompBEX 

32.69

70.21

41.86

 
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